Ask Value Research

When NPS matures

If you are 60, you can withdraw 60 per cent of the accumulated corpus and use the rest of the money to buy an annuity for a monthly pension

Research Desk

Please tell me what are the steps I should take on maturity of NPS.
- Meenu Chadha

If you are 60, you can withdraw 60 per cent of the accumulated corpus in National Pension Scheme (NPS) and use the remaining 40 per cent of funds to buy an annuity for a monthly pension. You also have the option of "deferred withdrawal" of the lumpsum amount to a maximum period of 10 years. If the total corpus is below ₹2 lakh, you can withdraw the entire amount. If you are exiting NPS before you are 60 years, you can withdraw only 20 per cent of the accumulated funds in a lumpsum. You have to use 80 per cent of the money to buy an annuity.

This article was originally published on December 04, 2015.

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